WASHINGTON, October 10, 2014 – The Middle East and North Africa (MENA) region has long struggled to generate enough quality jobs for its large and increasingly educated workforce, but this can... Show More + be turned around. Governments can make significant strides in job creation by reforming policies used to protect politically connected companies, which would in turn promote competition, and ensure equal opportunities for all firms, according to a new regional World Bank study.Jobs or Privileges: Unleashing the Employment Potential of the Middle East and North Africa, launched today highlights the central role of promoting competition to stimulate private sector growth. It establishes that young and productive firms generate employment in the region’s economies. Policies to protect privileged insiders, however, have constrained competition, and stifled the growth and productivity of these firms.“The employment challenges of the MENA region are inextricably linked to its economic governa Show Less -

The millions of workers, consumers, and entrepreneurs who bear the cost of this are often unaware the impact these policies have on the opportunities to which they aspire. In Egypt, for example, aggregate... Show More + employment growth declines by about 1.4 percentage points a year when connected firms enter new business sectors. Without grasping this, the internal debate critical for economic reform is curtailed.In economies in MENA, like economies everywhere else, it is the start-ups and the most productive firms that are the engines of job creation. The report provides plenty of evidence to support this: in Lebanon, about 177 per cent of net job creation from 2005 to 2010 was generated by micro start-ups; in Tunisia, small startups created 580,000 jobs from 1996 to 2010—92 percent of all net job creation. Although it has fewer start-ups overall, Jordan provides a striking example of what entrepreneurs can achieve against the odds. Unable to tap start-up capital, a Jordanian couple who retur Show Less -

There are a number of reasons to be optimistic after the recent ‘Invest in Tunisia: Start-up Democracy’ conference. Prime Minister Mehdi Jomaa made it clear that fixing the economy was now a top priority.... Show More + There was consensus around the reforms needed and a sense of urgency about tackling them. The conference attracted business and political leaders from over 30 countries, including the prime ministers of Algeria, France and Morocco, in a strong signal that Tunisia can count on international support as it meets the challenges ahead. Above all, it has generated a momentum that can now be built on.The next step should be bold actions to create an environment that will indeed attract investment and kick start growth and job creation. With growth slowing and the macroeconomic situation becoming ever more precarious, there is no time to waste. Getting there will require both seizing the momentum and broadening the consensus to build a national coalition around critical economic decisions. Th Show Less -

To put this amount in perspective, Tunisia spends roughly the same amount of public money on the incentives to the offshore sector as it spends on public investment projects in infrastructure. Added... Show More + to which, the type of investment that has benefited most from the government’s offshore incentives has been in mining, energy and banking—none of which are labor intensive, meaning they do little to absorb Tunisia’s mass of unemployed. The result is that while average wages in Tunisia are around US$4,000 per year, the cost of each additional job created thanks to the incentives is approximately US$ 20,000 per job per year.Barriers to entry and to competition characterize the onshore sector. The high degree of protection Tunisia’s domestic producers receive has led to underperforming companies producing uncompetitive goods and services. The result is that the low efficiency of the onshore sectors, notably the backbone services to firms, negatively affects the competit Show Less -

A new report to be released soon by the World Bank shows how the previous regime used industrial policy and business regulations to protect a web of connected firms from competition. This resulted in higher... Show More + prices for services such as telecoms, transport and banking, which in turn made it difficult for the exporting sectors—which could potentially employ a lot of people—to compete in world markets. In so doing, the firms connected to the Ben Ali regime earned about 20 percent of the profits in the economy while they provided employment to only one percent of the workforce. While the regime and those who benefitted directly from this system are not in power anymore, some of the laws, regulations, and administrative practices that allowed them to capture key sectors of the economy are in need of urgent reform.The knowledge of how the previous regime operated will help the new government design policies to reform the system and minimize the risk of capture. The transition governments Show Less -

Accelerating economic reforms is critical for the next phase of transitionTUNIS, September 9, 2014 – World Bank Regional Vice President for the Middle East and North Africa, Inger Andersen confirmed today... Show More + that the economic reforms launched following the 2011 revolution are beginning to yield results for Tunisians. Speaking at the “Invest in Tunisia: Start-up Democracy” conference organized by the Tunisian authorities with support from the French Government, the World Bank Vice President encouraged the interim government to accelerate the momentum for reforms to attract investments needed to bolster economic recovery and job creation.With the forthcoming national elections heralding the conclusion of the political transition, the conference held in Tunis laid out a vision for the county’s economic transition. A diverse group that included heads of state, business leaders and representatives of international organizations gathered to show their support for this critical phase. In her int Show Less -

Thank you Philippe. Dear Ministers, distinguished guests, ladies and gentlemen,I am very pleased to be here in Tunis for this extremely welcomed conference which signals the international community’s support... Show More + for Tunisia. It is critical that Tunisia succeeds, and transitioning from hope to reality is key. Tunisia is a beacon of hope for the Arab region. As Tunisia resolutely engages on a sustainable and stable path, it shows the world that democracy can be successful.Start-Up democracy, this expression coined by the Tunisian Prime Minister Mehdi Jomaa says it all. Earlier this year, Tunisia has adopted a new, inclusive constitution that protects basic freedoms. Consensus and compromise were chosen over conflict. Today, it is our collective responsibility to help Tunisia on the path of sustainable and inclusive economic growth.WBG support. Since 2011, the WBG has committed more than $1.7 billion. This calendar year alone we made available an envelope of $1.2 billion and we intend to add Show Less -

Tunisia’s relatively relaxed attitude toward taxation helped start-ups like theirs, he added. “It gives you more freedom. You say, ‘I’m a small company, no one will notice me.’ Anyway, there are companies... Show More + who make millions and they don't pay taxes.”Many of his Tunisian clients appeared not to be paying tax either; they certainly didn't ask for formal invoices. But a job for a Turkish airport operator gave them the push they needed to establish a legal company. With the Turkish client, “Everything was legal from A to Z.”Samir decided it was time to crank his business up a level. “As an official company you have a logo, you can price more expensively,” he said. It would also make it easier to take on work from more clients.He was pleasantly surprised by how easy it was to register the company at the one-stop office (guichet unique) of a Tunis branch of the agency, Agence de Promotion de l'Industrie et de l'Innovation (agency for promoting industry and innovation), in early 2014. “I Show Less -

Tunisia - Micro, Small and Medium Enterprise Development Project [Additional Financing] IBRD Loan: US$ 100 million equivalent Terms: Maturity = 15 years, Grace = 6 yearsProject ID: P146799Project... Show More + Description: The objective of the project is to improve access to finance for micro, small and medium enterprises in Tunisia, including through enabling creditworthy MSMEs to maintain access to credit. Show Less -

World Bank Working Paper by Bob Rijkers, Antonio Nucifora (both World Bank) and Caroline Freund (Peterson Institute of International Economics) What is this about: Ben Ali clan manipulated regulations... Show More + to reap astonishing profitsBen Ali’s extended family captured the privileges and rents created by the existing set of laws and regulations to their benefit—and they even manipulated the laws to suit their private interests.220 firms confiscated to the Ben Ali clan by the end of 2010 accounted for less than 1% of jobs but were capturing an astounding 21% of all private sector profits (more than 0.5% of GDP, or USD233 million in 2010 only).Ben Ali firms outperform other firms on all levels (profits, output, and market share).The choice of sectors was not random: Ben Ali’s family chose lucrative sectors where competition was restricted, either through prior authorization requirements of FDI restrictions, such as air and maritime transport, telecoms, retail and distribution, real e Show Less -

Bank Group ContributionMore than $1.45 billion in competitiveness projects have been sourced from the competitiveness programs through 27 projects under active implementation, almost entirely sourced from... Show More + IDA/IBRD funds. An additional 19 projects worth $1.566 billion are in the design phase. Together these 40 projects are spread worldwide: 53 percent are located in Africa, 5 percent in East Asia and the Pacific, 8 percent in Europe and Central Asia, 15 percent in Latin America or the Caribbean, 8 percent in the Middle East and North Africa, and 13 percent in South Asia. The Competitive Industries practice is also leading 56 analytical and advisory activities spread through various countries and regions: 66 percent are in Africa, 2 percent in East Asia and the Pacific, 5 percent in Europe and Central Asia, 7 percent in Latin America or the Caribbean, 11 percent in the Middle East and North Africa, 7 percent in South Asia, and 2 percent in global initiatives. The CI practice leverag Show Less -

For too long, Tunisia’s economy has underperformed its competitors, failing to produce enough good jobs for Tunisians, and resulting in low investment and high prices for Tunisian consumers. Under the... Show More + old regime, this lack of competition led to predation by the ruling elite, which acted with impunity while Tunisia’s economy, its job creators, and its workers suffered. The basis of that system remains largely in place today. It is high time for Tunisia to make reforms to its competition law, investment code and its banking sector so that all Tunisians get to play on a level playing field.To many of my Tunisian friends, these reforms should wait until the political situation has stabilized. It is certainly true that Tunisia faces pressing demands that cannot wait to be addressed. Security remains an urgent challenge, divisions in the country will test the ability to find consensus, and as the World Bank recently reported, Tunisia’s economy remains vulnerable to internal and external Show Less -

MR. MILLS: Well, thank you very much for joining us for this closing press conference. Our participants will each make an opening statement and then we'll take... Show More + your questions. If I can ask everyone to please turn off your mobile devices or put them to vibrate, we would appreciate it. Chairman Belka. MR. BELKA: Thank you. As we are late, I am not going to be very descriptive about the meeting of the Development Committee. You know the agenda. The discussion was very rich, centering around the social safety nets, the private sector involvement in growth initiatives, as well we discussed modernization of the World Bank. However, one thing that is obvious, it took so long because all the delegates took the opportunity of this Development Committee meeting to express gratitude and adm Show Less -

MR. MILLS: Good morning, everyone. Thank you for joining us for our World Bank Group press conference for the 2012 Spring Meetings. Joining me this morning is the President of the World Bank... Show More + Group, Robert Zoellick, who will have an opening statement and then take some of your questions. If I could please ask everyone when they ask a question to identify themselves and your organization; and once again, I am sure you have been asked, but if we could have our mobile devices switched off or to "vibrate." So, President Zoellick. MR. ZOELLICK: Thank you, Rich. Welcome, and thanks to all of you for coming. This marks my last Spring Meetings as the President of the World Bank Group, so I would like to begin with a few words of thanks to the Ministers who have supported us and worked with us; to our Executive Board, who have labored hard to help our Management team to modernize the important multilateral institution; to the excellent Senior Manageme Show Less -

Washington, April 16, 2012 — World Bank Group President Robert B. Zoellick today congratulated Dr. Jim Yong Kim for being chosen to become the 12th president of the development institution and offered... Show More + his support in ensuring a successful handover for July 1. “I am pleased to work with Jim Yong Kim during the transition. He is an impressive and accomplished individual. Jim has seen poverty and vulnerability first-hand, through his impressive work in developing countries. His innovations in health-care have helped to save numerous lives. As President at Dartmouth College, Jim has had to take tough managerial and financial decisions while running a large, multidisciplinary organization. His rigorous, science-based drive for results will be invaluable for the World Bank Group as it modernizes to better serve client countries in overcoming poverty.” Show Less -

WASHINGTON, April 16, 2012 - Dr. Jim Yong Kim today released a statement in response to his selection by the World Bank's Executive Directors as 12th President of the World Bank: “I am honored to... Show More + accept the Executive Directors’ decision to select me as the next President of the World Bank Group. I am delighted to succeed Robert Zoellick, who has served with excellence and distinction during the last five years, and I am grateful to the Bank’s member countries for the broad support I have received. I have spoken with Minister Okonjo-Iweala and Professor Ocampo. They have both made important contributions to economic development, and I look forward to drawing on their expertise in the years to come. It is befitting that I conclude my global listening tour in Peru. It was here in the shantytowns of Lima that I learned how injustice and indignity may conspire to destroy the lives and hopes of the poor. It was here that I saw how communities struggle to prosper bec Show Less -

WASHINGTON, April 16, 2012 - The Executive Directors met today to select a new President of the World Bank Group. The Board expressed its deep gratitude for Mr. Robert B. Zoellick’s outstanding leadership... Show More + and his dedication to reducing poverty in its member countries, the core mandate of the World Bank Group. The Executive Directors followed the new selection process agreed in 2011 which, for the first time in the Bank’s history, yielded multiple nominees. This process included an open nomination where any national of the Bank’s membership could be proposed by any Executive Director or Governor, publication of the names of the candidates, interviews of the candidates by the Executive Directors, and final selection of the President. The Executive Directors selected Dr. Jim Yong Kim as President for a five-year term beginning on July 1, 2012. The President is Chair of the Boards of Directors of the International Bank for Reconstruction and Development (IBRD) and the Internation Show Less -

Policy makers under pressure can get preoccupied with the fixation of the moment. For the eurozone, that idée fixe has been “the firewall”. How big is big enough? Who contributes and how?Now that the eurozone... Show More + finance ministers have exhausted themselves with a multilayered package of hundreds of billions of euros, the debate will go global at this week’s spring meetings of the International Monetary Fund and the World Bank. The next preoccupation will be how many more hundreds of billions of euros should be pledged to the IMF. It will be Firewall II: the Sequel.I beg to differ. Not with firewalls exactly, but with the preoccupation.The survival of the eurozone now depends on Italy and Spain. They are the countries that are too big to fail – or to rescue. Extraordinary action by the European Central Bank has lowered the interest rates that Italy and Spain pay on their debt, but not solved their problems.In one sense, the much-badgered Germans are right. The fates of Italy and Spain depen Show Less -

Launched at the height of the global financial crisis, the Joint IFI Action Plan and the European Banking Coordination ‘Vienna’ Initiative (EBCI) provided a significant financial contribution to rescue... Show More + packages in the Emerging Europe region, and a critical coordination mechanism for national reform programs and venue for policy dialogue among key stakeholders in the region. The unprecedented level of cooperation was a key contribution to restoring market confidence in Emerging European banking systems. It illustrated the important counter-cyclical role played by the International Financial Institutions (IFIs) during the financial crisis.Joint IFI Action PlanThe Joint IFI Action Plan, announced in February 2009 at the height of the global financial crisis, was sponsored by the World Bank Group – the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA); the European Bank Show Less -

WASHINGTON, September 21, 2011 – A new World Bank report, Middle East and North Africa Economic Developments and Prospects: Investing for Growth and Jobs highlights the important links between good governance... Show More + on a level legal and regulatory playing field, and the ability of investment to stimulate growth. “Indeed, if we look at examples from other countries undergoing transition, investment surged in many economies that made early moves to improve governance,” says Caroline Freund, Chief Economist for the Middle East and North Africa region at the World Bank. “Overall, while improving government institutions is necessary for voice and accountability, it is also necessary for growth and efficient use of resources.”To revive investment above and beyond pre-Arab-Spring levels, a move to transparency and accountability is urgent, she argues. The report notes that investment in the Middle East and North Africa (MENA) region has been strong over the last two decades in comparison w Show Less -